SPEM vs. EEM

Last updated Jun 23, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging BMI Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, SPEM returned 9.96%/yr vs 10.51%/yr for EEM. With a 0.96 correlation, they move nearly in lockstep. SPEM charges 0.07%/yr vs 0.72%/yr for EEM.

Performance

SPEM vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 14.64% return, which is significantly lower than EEM's 30.84% return. Over the past 10 years, SPEM has underperformed EEM with an annualized return of 9.96%, while EEM has yielded a comparatively higher 10.51% annualized return.

SPEM

• 1D: 1.10%
• 1M: 4.42%
• YTD: 14.64%
• 6M: 15.36%
• 1Y: 33.19%
• 3Y*: 19.39%
• 5Y*: 6.53%
• 10Y*: 9.96%

EEM

• 1D: 0.59%
• 1M: 8.65%
• YTD: 30.84%
• 6M: 32.53%
• 1Y: 56.71%
• 3Y*: 24.99%
• 5Y*: 7.99%
• 10Y*: 10.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SPEM vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	14.64%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
EEM iShares MSCI Emerging Markets ETF	30.84%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between SPEM and EEM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Mar 23, 2007	0.96

The correlation between SPEM and EEM has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

SPEM vs. EEM - Sectors Allocation Comparison

Sectors	SPEM	EEM
Technology	32.1%	46.4%
Financial Services	19.2%	17.8%
Consumer Cyclical	9.6%	7.2%
Industrials	8.3%	5.9%
Basic Materials	8.0%	5.7%
Communication Services	6.7%	5.6%
Energy	4.2%	3.0%
Healthcare	3.7%	2.3%
Consumer Defensive	3.6%	2.4%
Utilities	2.8%	1.8%
Real Estate	1.8%	0.9%

Return for Risk

SPEM vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPEM

SPEM Risk / Return Rank: 61
SPEM Sharpe Ratio Rank: 62
SPEM Sortino Ratio Rank: 59
SPEM Omega Ratio Rank: 63
SPEM Calmar Ratio Rank: 61
SPEM Martin Ratio Rank: 60

EEM

EEM Risk / Return Rank: 82
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 77
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 83
EEM Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SPEM vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) and iShares MSCI Emerging Markets ETF (EEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SPEM	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.59	-0.60
Sortino ratio: Return per unit of downside risk	2.70	3.28	-0.58
Omega ratio: Gain probability vs. loss probability	1.37	1.48	-0.11
Calmar ratio: Return relative to maximum drawdown	2.93	4.22	-1.28
Martin ratio: Return relative to average drawdown	10.51	15.52	-5.01

SPEM vs. EEM - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.99, which is comparable to the EEM Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of SPEM and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SPEM vs. EEM - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, roughly equal to the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for SPEM and EEM.

Drawdown Indicators

	SPEM	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-66.43%	+2.02%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-13.52%	+2.16%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-17.29%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	-37.49%	+5.74%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-39.82%	+3.76%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-14.72%	-15.99%	+1.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.16%	3.66%	-0.50%

Volatility

SPEM vs. EEM - Volatility Comparison

The current volatility for SPDR Portfolio Emerging Markets ETF (SPEM) is 6.73%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.95%. This indicates that SPEM experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	10.95%	-4.22%
Volatility (6M) Calculated over the trailing 6-month period	14.43%	19.83%	-5.40%
Volatility (1Y) Calculated over the trailing 1-year period	16.77%	22.04%	-5.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.30%	19.39%	-2.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	20.69%	-1.85%

SPEM vs. EEM - Expense Ratio Comparison

SPEM has a 0.07% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

SPEM vs. EEM - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 3.44%, more than EEM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.56%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
SPEM SPDR Portfolio Emerging Markets ETF	3.44%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SPEM and EEM in my portfolio?

With a correlation of 0.96, SPEM and EEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SPEM or EEM?

EEM has higher volatility (10.95%) compared to SPEM (6.73%). In terms of maximum drawdown, SPEM dropped -64.41% vs EEM's -66.43%.

Which ETF is better, SPEM or EEM?

On 10-year performance, EEM leads with 10.51% vs 9.96% for SPEM. On fees, SPEM is cheaper at 0.07% per year. On volatility, SPEM has been the lower-risk option at 6.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or EEM?

Over the 10-year period, EEM has performed better with a 10.51% return vs 9.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or EEM?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.72% for EEM.

Which ETF pays a higher dividend yield, SPEM or EEM?

SPEM has the higher dividend yield at 3.44%, compared with 1.56% for EEM.

What is the main difference between SPEM and EEM?

SPEM is categorized as Emerging Markets Equities, while EEM is Emerging Markets Diversified. SPEM tracks S&P Emerging BMI Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: State Street and iShares. Their fees differ too: 0.07% for SPEM and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.59 vs 1.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.